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Does your business’s written statement meet all legal requirements?

As a business owner, you have plenty of legal obligations to fulfil to ensure your employees understand their terms of employment. This is where a company written statement comes into place.

You are legally required to provide all your employees with a written statement that summarises their terms of employment.

It is not your employee’s contract, the written statement is an overview of certain terms they get upon joining your company.

You must provide a written statement to all employees as well as future starters.

However, big or small your company is, it is your legal responsibility to provide written statements which is why you should be checking them to ensure all information is included.

What must I include in my company’s written statements?

Written statements are split into two parts.

The first is a principal statement which is an overview of your employee’s main terms of employment. The second is a separate statement that covers things such as sick leave and pensions.

The principal statement must include both your name and your employee’s name as well as the address of the company and where they will be working from.

If they are working remotely, your employee’s address will need to be added to the principal statement.

Your principal statement must be given to your employee on their first day or prior to joining the company. That principal statement must clarify certain terms such as their job title, their official employment start date, rate of pay and hours of work.

In addition to this, your principal statement must include holiday entitlements, holiday pay and whether public holidays are included so your employees know how much holiday leave they have and when that resets.

You also need to confirm details of non-permanent employment. This applies if you are hiring employees on fixed-term contracts, you also need to confirm any non-contractual benefits such as childcare vouchers.

The principal statement must also clarify your probation plans. Your employee needs to know how long their probation period is and the conditions of that.

You also need to include details of any obligatory training whether covered by your company or not.

If there are plans for an employee to work abroad, you also need to include that information in your principal statement.

How long they’ll be working abroad, the currency they’ll be paid in, any additional benefits and terms on returning to the UK.

There is plenty you need to consider when drafting your principal statement, it is your legal obligation to put the document together and ensure your employees receive a copy.

What does the secondary statement need to cover?

As noted above, written statements can be split into two or you can choose to make one universal statement covering all employment terms.

But, if you decide to split your written statements in two, that second statement must cover information on paid and sick leave and notice period details when an employee decides to leave your company.

In addition to this, you must also confirm your company’s pension policy and inform your employee of any company pension scheme.

You also need to clarify your company’s disciplinary and grievance procedures so your employee understands how they must behave and conduct themselves.

Unsure about your company’s written statements?

As a business owner, it is your responsibility to have written statements in place, whether your company is just beginning or has been established for several years.

The rules remain the same, however small or large your company is.

You need to have written statements in place and if you are unsure that all the information required isn’t in there, you should be contacting employment law experts who will help you assess your written statements and make changes accordingly.

Check your written statements fulfil all legal requirements by getting in touch with our team.

Amanda Hyam

Head of Dispute Resolution and Employment

I have specialised in Dispute Resolution, Civil Litigation and Employment law for more than 15 years. I understand how daunting the prospect of litigation can be and because of this I am always available to discuss concerns.